Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-01-12

becomes prohibitory. A very large part
of the manufactured raw material of this
country belongs to this class, paying a
trifie over the additional cost, but in con-
sequence of its movement developing a
business that may pay better and giving
its small portion of net profit above the
cost of movement toward the large items
of fixed and semi-fixed expenses. Whether
a road is doing a profitable business OF
not is not determined by the percentage
of operating expenses. Thus a road car
rylng valuable goods and doing a small
business may find its percentage of oper--
atiDg expenses upon the amount carried
very small. whereas if there could be
thrown upon it in addition large busl-
ness of cheap transportation, its earnings
would be larger, but the per cent. OF oper,,
ating expenses would be increased, and
to the extent that there was net earning
on this cheap class of trade, just so far the
company would be benefited.
The long haul at cheap competing rates
is really beneficial to the short haul at nom
competing rates, for it may be that neither
alone would maintain the road. If I'M
derstand this bill correctly, under l. the
long lines of railroads passing through
different States will have to give up
one or the other. 1t will be, practically,
a regulation of freight within the bound
aries of State and make barrier OF the
boundaries of State to the free transmits
sion of commerce.
Since the first road was built in the
United States up to this time, the railroads
have subs antially fixed their own rates for
services, until to-day the rate is such as
was not dreamed of as possible twenty
wears ago, nor was it believed possible ten
years ago. The whole country is de
yeloped, and no product has suffered for
the want of movement. The general rail.
road management of the country is careful
to consider what the cheap unmanu-
featured products of the country can afford
to paw, and make their rates with view
that production shall not be hindered. The
rates charged manufactured goods, almost
without an exception, do not affect the pro-
ducer or consumer. II the rates OF freight
upon manufactured articles were reduced
half, the probability is that there is
nothing that moves by railroad over the
longest line in the country whose price to
the consumer would be affected, or would
be taken into consideration by the man u
facturer; but the fractional part of a cent
becomes a serious consequence in the long
haul to most of the raw products Of the
country.
The higher the maximums the lower the
possible minimums. Thus. in my own
State, with maximum of Is cents per ton
per mile, with an average cost OF 2 cents
per mile for movement which was about
the average at one time, one ton of freight
moved at Is cents ton per mile would en-
able the railroad to move fourteen tons at
the minimum rate of cent per mile. There
was at that time about l per cent. of the
business done at the minimum, the other
80 per cent was done at rates governed by
circumstances and influences which the
railroad company could not control.
This bill seems to me not only to deny
competition by railroads which exist al
most throughout the length and breadth of
the country, but to exhibit tendency to
foster water ways to the positive discour-
agement of the railroad interest. II it
aimed bu: to insure the water line of COM
munication against the competition of rail-
roads. l do not know how bill could be
framed to secure that object better than this
one. If railroaoing is legitimate BUSH
ness, if it is only the aggregate of the pri-
vate property contributed by the stock
holders, and if it is maintained and oper-
ated by the labor of individuals, what justi-
fication there can be for depriving the owner
of its control and the property of its full
earning capacity, within the laws as they
existed at the time of the original invest
mentS, am unable to see. 1t seems to me
clearly that it is violation of the rights of
property and the right of the laborer to
receive q compensation for services per-
formed.
1t is also a encouragement of this class
of investment. The railroads up to this
time have received the peculiar indorse-
ment of being of such highly beneficial
character that the State could exercise
the right of eminent domain to the end
that the road might be built If this bill
shall become law, its consequences will
be most disastrous, in my judgment, to the
various business interests of the country.
When you think that most of the products
of the country pass one or more times over
its railroads; of the many thousands
whose calling depends upon these roads,
and the vast volume of business and its
great value that moves over them, it seems
to me that Congress ought to consider with
great care how investments in these indus
tries of all kinds may be disturbed. That
must be plain to the dullest compre-
hension,
While the railroad companies have been
as free to manage their business under the
common laws as those engaged in other
callings, the country has prospered; accom-
modations have been and are given that
promote the prosperity of every industry.
There has been no taking of property with
out compensation no control without
ownership, and the Anarchists in the his
tory of the country have thus far found
little justification in the example of the
Government for the violent taking of prop
erty. There can be no valid objection to
police and sanitary regulations, but only to
that attempted regulation VIII oh goes into
and affects values, directly and inevitably.